Acquisition of Colorado’s largest casino operator includes three Denver-area casino properties collectively featuring 1,500 slot machines, 20 table games and 119 hotel rooms
LAS VEGAS, NV – September 30, 2019 – Maverick Gaming LLC (“Maverick” or “Maverick Gaming”), an owner of regional gaming assets, today announced the signing of a definitive purchase agreement with CC Gaming LLC (“CC Gaming”), Colorado’s largest locally-owned casino operator , to acquire its gaming and non-gaming assets, which include Z Casino in Black Hawk, CO; Grand Z Casino Hotel in Central City, CO; Johnny Z’s Casino in Central City, CO; and the Z Stop Convenience Store and Gas in Golden, CO. The transaction will add over 1,500 slot machines, 20 table games and 119 hotel rooms to the Maverick portfolio. Black Hawk / Central City, Colorado is one of the top 15 gaming markets in the United States (per the American Gaming Association). Terms of the transaction were not disclosed.
Maverick Gaming was founded by leading gaming industry veterans to be a best-in-class regional owner and operator of gaming assets in North America. Maverick and its affiliates currently own 23 gaming establishments in the United States.
Eric Persson, the majority owner of Maverick and its affiliates said, “As Maverick continues to grow and expand our portfolio of regional gaming properties and assets, we are extremely pleased to add CC Gaming’s casinos to our company. I admire the work that John Zimpel, Owner and Managing Member of CC Gaming, has done to grow his casino business and we look forward to building upon the foundation he established.”
Mr. Persson continued, “We believe this purchase puts us in position to become a significant player in the Colorado gaming market with an emphasis on Denver. Given Denver’s growing population of nearly three million people, limited gaming distribution and a thriving economy, we believe we can add value to the Denver gaming market, which we intend to invest in as owner-operators.”
Mr. Zimpel commented, “It is with great pride and hard work that my team and I have built CC Gaming into the largest locally-owned casino operation in Colorado. CC Gaming’s success can be attributed to our customer focused product offering and the best team members in Colorado. I believe that Maverick will be a great owner and operator and look forward to a smooth transition.”
Maverick intends to fund this transaction primarily with cash on hand and financing from HG Vora Capital Management, a private investment firm. “HG Vora is an important financing partner for Maverick Gaming with deep experience in the gaming sector. We look forward to growing our portfolio over the near term with their partnership” Mr. Persson commented.
The transaction is subject to the approval of the Colorado Limited Gaming Control Commission and is expected to close this year.
Innovation Capital, LLC acted as exclusive sell-side financial advisor to CC Gaming. Jester Gibson & Moore, LLP acted as legal counsel to CC Gaming. Lewis Roca Rothgerber Christie LLP and Butler Snow LLP acted as legal counsel to Maverick Gaming.
ABOUT MAVERICK GAMING LLC
Maverick Gaming is majority-owned and was founded by gaming industry veterans Eric Persson, who previously served as Global Senior Vice President of Slots at Las Vegas Sands and Justin Beltram, former Vice President of Slots at Bellagio and Marina Bay Sands. Together they bring over 30 years of gaming experience spanning gaming markets around the world including the Las Vegas Strip (Venetian, Palazzo, Bellagio), Macau (Sands China Limited), Singapore (Marina Bay Sands), and many regional markets in North America. Maverick Gaming currently owns the Wendover Nugget and Red Garter Hotel, the Red Lion Casino, the Gold Country Casino, and 19 card rooms in Washington State. Maverick’s portfolio includes approximately 1,500 slot machines, nearly 350 table games and 1,200 hotel rooms nationwide.
ABOUT CC GAMING LLC
CC Gaming is the largest casino operator in Colorado, owning a portfolio of 3 casino properties: Johnny Z's Casino (opened in 2011) located in Central City, Z Casino (opened in 2013) located in Black Hawk, and Grand Z Casino Hotel (opened in 2017) located in Central City. CC Gaming also owns and operates the Z Stop Convenience Store and Gas, the only gas station and convenience store located between Denver and Black Hawk/Central City on Highway 119.
ATMORE, Ala., June 3, 2019 /PRNewswire/ -- PCI Gaming Authority D/B/A Wind Creek Hospitality (WCH), an authority of the Poarch Band of Creek Indians, has finalized the purchase of the Sands Casino Resort in Bethlehem, Pennsylvania, for a total enterprise value of $1.3 billion. The property will be rebranded as Wind Creek Bethlehem (WCB).
WCB will welcome guests to the upscale, Las Vegas-style resort, located in the heart of the Lehigh Valley of Pennsylvania, approximately 80 miles from New York City. Amenities currently include a 282-room AAA four diamond hotel, a 183,000 square foot casino floor featuring 3,000 slots and electronic table games, 200 table games, numerous food and beverage outlets, a 150,000 square foot retail mall, and a multi-purpose event center.
Over time, WCH plans to invest an estimated $340 million in updating and expanding the property to include construction of a 300-room hotel adjacent to the casino; a 300,000 square foot adventure and water park at the existing No. 2 Machine Shop Bethlehem Steel site; and a 400-to-450-room hotel adjacent to the adventure park. All expected to bring additional jobs, tourism and economic growth to Lehigh Valley.
WCH President/CEO, James Dorris commented "One of the things that drew us to this property is the quality and experience of the service-minded employees. Each of the nine executives has accepted a multi-year contract with us and we hope that all team members want to continue their work here as part of the Wind Creek family. We will need them as we grow the offerings at Wind Creek Bethlehem. "
The purchase of its largest property to date provides a significant opportunity for WCH to diversify its holdings as well and to offer the Wind Creek Rewards program and online WindCreekCasino.com to millions of new customers. Travel perks offered by the Wind Creek Rewards program to some of the most alluring resorts in the Caribbean: Renaissance Aruba Resort and Casino and Renaissance Curacao Resort and Casino, both owned by WCH, are expected to be particularly appealing escapes for WCB customers during the cold winter months.
Wind Creek Hospitality funded the acquisition with a combination of existing cash on its balance sheet and new debt financing. Credit Suisse has provided financing for the transaction. Wind Creek Hospitality anticipates that the additional cash flow resulting from the acquisition will allow it to pay down debt on an accelerated basis after closing. Innovation Capital, LLC is exclusive financial advisor and Cooper Levenson P.A. is legal counsel to Wind Creek Hospitality in connection with the transaction.
About Wind Creek Hospitality
Wind Creek Hospitality is an authority of the Poarch Band of Creek Indians. Wind Creek Hospitality manages the Tribe's gaming facilities including: Wind Creek Atmore, Wind Creek Wetumpka, Wind Creek Montgomery, Wa She Shu Casino in Nevada, Renaissance Aruba Resort & Casino, Renaissance Curacao Resort & Casino as well as racetracks in Alabamaand Florida. For more information, visit: https://windcreekhospitality.com/.
About the Poarch Band of Creek Indians
The Poarch Band of Creek Indians is the only federally recognized Indian Tribe in the state of Alabama, operating as a sovereign nation with its own system of government and bylaws. The Tribe operates a variety of economic enterprises, which employ thousands of area residents. For more information, visit: www.pci-nsn.gov.
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PRESS RELEASE: ‘Good interest’ reported as judge clears way for Lucky Dragon bids
LAS VEGAS- (Eli Segall, Las Vegas Review-Journal) -- A judge approved bid procedures this week for the bankrupt Lucky Dragon, clearing the way for a potential sale of the off-Strip resort.
Lucky Dragon developer Andrew Fonfa said in a phone interview Thursday that he just got back from Beijing, which “gives you an idea of some of the investment groups I’ve been talking to,” and added that he expects to pick a group “to move forward with” by the end of June.
The bid procedures were approved Monday in U.S. Bankruptcy Court. Fonfa’s group said in court papers last month that the bankruptcy casewas “a straight forward hotel and casino sale” designed to pay its largest creditor in full and preserve jobs.
In the phone interview, Fonfa did not defintively state whether his group wants to sell the boutique hotel outright or just land a new partner, saying the owners want to “restructure and reorganize … around the sales process.” But he said the Lucky Dragon has “a lot of interested parties.”
Innovation Capital founding partner Matt Sodl, the hotel’s financial advisor, said Thursday that he’s “seeing good interest” in the property.
Lookers include groups from Asia and the United States, he said, though he declined to say whether any Las Vegas-based casino operators were in the mix.
Court records show Fonfa’s group planned to sell the Lucky Dragon at a hearing July 20. Qualified bidders would have to submit, among other things, a $2.5 million deposit and evidence of a “sufficient” management team and business plan.
Sodl said he couldn’t disclose what the hotel’s opening bid might be.
The Lucky Dragon, 300 W. Sahara Ave., was the first hotel-casino built from the ground up in Las Vegas since the recession. With a nine-story hotel and a 27,500-square-foot casino in separate buildings, it opened in November 2016 but had a brutal start.
Lucky Dragon’s developers and their lender Snow Covered Capital have submitted wildly different valuations of the property. Fonfa’s group said in court papers that it’s worth $143 million, but Snow, linked to San Francisco real estate investor Enrique Landa, said it obtained an appraisal that valued it at $60 million.
Snow Covered Capital was owed almost $50 million when Fonfa, founder of ASF Realty & Investments, pushed the Lucky Dragon into bankruptcy.